Basketball is a revered sport in the USA. As a result, it attracts a major following and franchises in NBA are making a lot of money due to major TV deals. NBA players are some of the best-paid athletes in the world. Their teams offer them huge salary and compensations. Most players also have deals with major kit makers like Nike and Adidas. Energy drinks like Red Bull ad monster are also on the front line working with the superstars in an advertisement.
NBA franchises cost an arm and a leg nowadays. The impending sale of Atlanta Hawks epitomizes how inflated the NBA franchise is. However, the firm brand of NBA continues to get stronger with bigger and better deals in the offing from TV and major kit makers.
The Atlanta Hawks management is working on the final details of the sale of the franchise to an investment group led by Antony Ressler. Although he refused to divulge more information on the sale until the whole deal was finalized, the billionaire equity and investment manager is said to be pushing for the completion of the deal.
It is said by PR News that it is an open secret that the current owner of Atlanta Hawks Mr. Bruce Levenson is willing to sell the NBA franchise for $850 Million. The price of the franchise which is considered fair in the market shows how strong the NBA brand is. Considering the Levenson and company purchased the NBA franchise together with NHL’s Atlanta Thrashers as well as acquiring the operating rights to Philips Arena for 250$ in 2004, selling it for $850 shows how the market has grown. Considering that they also sold the NFL outfit in 2004 for $170 makes it even more compelling. Read: http://www.forbes.com/sites/mikeozanian/2015/04/23/bankers-for-levenson-oversold-atlanta-hawks-by-27/.
Previously, the Ressler group had tried to purchase the Los Angeles Clippers franchise but were put off by the owner’s valuation of $2 billion.